American Airlines to cut 30 percent of management, administrative staff

American Airlines told employees on Wednesday that it plans on cutting its management and administrative staff by 30 percent, as the company struggles with low demand due to the coronavirus pandemic.

American has about 17,000 management and support workers, and the move will eliminate more than 5,000 jobs. Because of the pandemic, the number of passengers on planes plummeted in March and April, and airlines believe it could take years before travel is back to where it was pre-pandemic.

In a letter to employees, Elise Eberwein, American's executive vice president of people and global engagement, wrote that the company "must plan for operating a smaller airline for the foreseeable future." Volunteers will be able to take buyouts through June 10, but if not enough people step forward, forced cuts will be made.

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American will keep the employees on its payroll through the end of September, as this was a requirement for airlines to receive billions in government aid. The company has received $5.8 billion to cover labor costs and has applied for an additional $4.75 billion government loan.